Using Your UTSaver Account to Maximize Your TRS Benefit

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How to use your UTSaver Account to Maximize Your TRS Benefit

The Teacher Retirement System of Texas (TRS) provides service, death, and disability retirement benefits to many University of Texas System employees across the state. TRS service credit is an important component in determining not just eligibility for retirement, but the actual amount of the benefit a participant may receive when eligible.

TRS members can build service credit in two ways:

  • Earning credit through qualified employment in Texas public education; and

  • Purchasing service credit when eligible to do so.

There are many types of earned credit that may be eligible for purchase with TRS. However, there are only three ways to pay for eligible service:

  • A lump sum using after-tax dollars;

  • Installment payments using after tax dollars (which includes additional fees); or

  • A rollover from a qualified plan using pre-tax dollars or, in the case of UT employees who are participating in either the UTSaver Tax Sheltered Annuity 403(b) plan or the UTSaver Deferred Compensation Plan 457(b), a direct trustee-to-trustee transfer of pre-tax dollars.

Using pre-tax dollars through a rollover or transfer is the best way to maximize your tax savings. Both the UTSaver TSA and DCP plans allow participants to make trustee-to-trustee transfers to TRS for the purchase of eligible service credit, even of the participant is still actively employed and/or under age 59 ½.

If you are a participant with either the UTSaver TSA or DCP plan with a 100% pre-tax account and are eligible to purchase TRS service credit, you can indicate on the TRS service credit bill that you wish to use a rollover to pay for all or a part of the amount owed for that service. Doing so will generate the Eligible Rollover of Direct Trustee-to-Trustee Transfer to Purchase TRS Service Credit Form TRS 551 . Once you receive this form from TRS, send it directly to your approved UT provider to start the transfer process.

If you also have eligible service credit to purchase through the Employees Retirement System (ERS), you can submit the ERS rollover form directly to UT System Office of Employee Benefits at 512-579-5016 for special handling.

To learn more about purchasing TRS special service credit, please visit their website at www.trs.texas.gov. To learn more about your savings options with the UTSaver Plans, please visit UT Retirement’s website at www.utretirement.utsystem.edu.